Rank Rejects Harrah’s Swap Offer
26th November, 2007
UK casino and bingo operator Rank has rejected an approach made from the US casino giant Harrah’s Entertainment. Rank rebuffed the deal which saw Harrah’s effectively offer to swap its own UK casinos for a 28% stake in the enlarged Rank. A spokesman for Rank declined to comment, and Harrah’s could not be reached.
Over the past year, Rank has been treading on thin ice due to the smoking ban and the forced removal of high-yielding slot machines, along with tax hikes. Harrah’s (which owns the popular Caesar’s Palace) is currently in the process of being taken over by private equity funds Apollo Management LP and TPG Capital. Last year, Harrah’s was able to get their foot in the door of the UK market when they purchased London Clubs International. At the moment however, there seems to be no sign in another UK deal being made anytime soon, not with Rank anyway.
